T.N. police warn of rising ‘boss scam’ targeting company accountants 

There’s an alarming increase in the number of complaints across the country, says Cyber Crime Wing

Published – December 03, 2024 08:17 pm IST – CHENNAI S. Vijay Kumar

The Tamil Nadu police have warned of a scam targeting accountants in private firms. Fraudsters impersonate company Chief Executive Officers (CEOs) or Managing Directors (MDs) by sending fake emergency messages to pressure staff into transferring funds.

With dozens of cases reported across the country since early this year and a sharp rise in complaints over the past 10 days, the police have urged company heads to educate their finance teams about the emerging threat.

In an advisory, the Cyber Crime Wing (CCW) of the Tamil Nadu police described the scam as “alarming.” Fraudsters created fake WhatsApp profiles impersonating CEOs, MDs, or company owners to deceive accountants into making urgent fund transfers.

“This scam exploits trust and urgency,” said Additional Director-General of Police (ADGP) Sandeep Mittal. “The fraudsters manipulate victims by creating situations where they have little time to think or verify the authenticity of the request.”

The scammers typically messaged accountants or finance personnel, posing as the company’s top executive. They cited fabricated emergencies to demand immediate fund transfers to specific accounts.

According to Mr. Mittal, approximately 170 complaints related to the so-called ‘Boss Scam’ were registered in various States since January 2024. The police believed the accused persons operated both in India and abroad,  often using mule accounts – bank accounts opened by individuals who unwittingly or knowingly assist the scammers by allowing the use of their accounts for a fee.

To counter the scam, Mr. Mittal urged companies to implement strict financial protocols. “Finance managers should establish systems to authenticate identities, such as using secret questions or passcodes, before approving fund transfers,” he advised. “Following robust verification procedures can help ascertain the legitimacy of transactions.”

The ADGP made an appeal to bank managers to remain vigilant. “Banks should inquire further when senior citizens prematurely close fixed deposits citing emergencies or when customers transfer large sums of money. These funds may unknowingly be directed to scam accounts,” he said.

Awareness is key

Investigators emphasised the importance of public and organisational awareness to curb the growing menace of cyber crimes, especially online frauds.

By adopting preventive measures and maintaining vigilance, businesses houses and banks could safeguard their interests and contribute to the crackdown on financial fraud, they said.